Suppose your uncle made a killing in the stock market, Ask an Expert

Finance

Market inefficiencies

True or false?

Your uncle made a killing in the stock market yesterday. This implies that markets are inefficient

Which answer is correct?

You discover that you can make above normal returns if you buy oil-company stock just before noon on any given trading day and then sell them immediately before the market closes that same day. Which of the following described the event?

a) this would be a violation of weak form efficiency
b) this would be a violation of all forms of market efficiency
c) this would be a violation of strong forms of efficiency
d) his would not be a violation of market efficiency
e) this would be a violation of semi-strong form efficiency

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Category:- Basic Finance
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